Morris Chang is living proof of Taiwan's ability to transform its economy. In 1985, the China-born Chang, once a long-serving executive at Texas Instruments in the U.S., was lured to Taiwan by the government as part of its effort to develop a high-tech industry. He was hired to manage a state-funded research institute, but shortly after his arrival, an influential technocrat, Li Kuo-ting, called Chang to his office and told him: "Think about how you want to start a company." The conversation led Chang, backed by state funding, to found Taiwan Semiconductor Manufacturing Co. (TSMC), now the world's largest...